Government raises P35 billion from T-bonds
MANILA, Philippines — The government managed to secure P35-billion in Treasury bonds (T-bonds) even as rates remain in an upward movement for long-term government securities.
The Bureau of the Treasury yesterday awarded P35-billion worth of 10-year T-bonds on offer.
The T-bonds fetched an average yield of 6.703 percent, ranging from a low of 6.5 percent to a high of 6.8 percent. Coupon rate has been set at 6.75 percent.
The rate was 10.3-basis-point higher than the BVAL Reference Rate, which is the standard for securities, of 6.6 percent for the 10-year bond.
However, this is lower than the 6.865-percent rate fetched during the last comparable 10-year T-bonds auction last July 19.
“Strong demand kept rates within secondary level even with hawkish statements from the US Fed and commitment to bring inflation to two percent target,” national treasurer Rosalia de Leon said.
Demand for the securities attracted P99.311 billion, oversubscribing the auction by 2.84 times.
Such a demand is above the previous week T-bonds on offer that only reached P40.732 billion.
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